Market Drivers – US Session – 11 February 2022

The US Treasury yields have been declining since the beginning of the daily trading on Friday, after consumer confidence data and their negative impact on the future of the US economy and economic recovery.

Economic Data
According to the University of Michigan’s preliminary February Consumer survey, the Consumer Sentiment Index fell to 61.7 in February, well below expectations for a slight rise to 67.5 from 67.2 in January. That marked the lowest such reading since October 2011.

The Current Conditions Index fell to 68.5 from 72.0 in January versus forecasts for a small rise to 73.0, its lowest reading since August 2011. The Consumer Expectations Index fell to 57.4 from 64.1 in January, it’s lowest such reading since November 2011. The one-year Inflation Expectations Index rose to its highest since July 2008 at 5.0% from 4.9% in January.

Other Developments
As Wall Street closed, it crossed the wires the news that the US President Joe Biden and Russia’s Vladimir Putin would talk over the phone on Saturday, per Via citing the Kremlin.

Putting the geopolitical jitters aside, the greenback got bid, with the US Dollar Index, advancing close to 0.50%, reclaiming 96.05, linked to safe-haven flows. US Treasury yields fell in the bond market, led by the 10-year yield down eleven basis points, below 2% at 1.916%, a tailwind for precious metals.

At the same time, gold rises 2% exchanges hands at $1864.44 a troy ounce, while US crude oil benchmark, WTI, hit $93.10 per barrel amid revived Ukraine invasion concerns going into the weekend.

The EUR/USD pair is being hammered by the crisis, trading at 1.1345, while the GBP/USD barely unchanged at 1.3550 got a boost from higher UK’s GDP numbers. Concerning safe-haven pairs, the USD/JPY failed to cling to the 116.00 figure influenced by safe-haven flows, trades at 115.31, while the USD/CHF finished at 0.9243.

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